Rival interest: Southampton also bid for Coutinho. Their manager, Mauricio Pochettino, managed the player at Espanyol

"Liverpool is a great club with great players. We've always heard about Liverpool's history in Brazil. I know they believe in me and my football."

Southampton were also interested in Coutinho, who becomes Liverpool's second signing of the transfer window following the capture of striker Daniel Sturridge from Chelsea at the beginning of the month.

Playmaker Coutinho, who has one cap for Brazil, is a product of Vasco da Gama's youth system.

He was bought by Inter in 2008, at the age of 16, for €4m, although the Serie A side immediately loaned him back to Vasco, because foreigners are prohibited from playing professional football in Italy until they are 18.